Love your QuickBooks tips and tricks section. Thank you! In one of your posts, “How to Process PayPal Sales in QuickBooks, ” you mention “you can add the fees right on the sales receipt. Create an other charge item called something like “PayPal fees” and map it to your expense account. When you use it on a sales receipt, enter a negative number for the fee. This will reduce the deposit to the net amount that’s actually deposited to PayPal.” My question is, what if we don’t use Sales Receipts and we just go from Sales Orders to Invoices? Should we do the same as you explain, on the S.O. or Invoice? And just to be sure I have it right, the Paypal fee then will be shown as an invoiced discount for the customer (in the amount of the fee), which is paid by one of my expense accounts? Thanks again!
You can enter negatives on sales orders and invoices as well, just about any transaction actually. It’s one of my favorite tricks for fixing things. The question is, do you want your clients to see the fees. If so, go for it. If not, send them the sales order or invoice without the fee and then go back in and edit it to add the fee. You can also add the fees directly onto the deposit, once again as a negative. Keep in mind that the transaction total cannot be negative, though.
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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.
Written by +Ruth Perryman
Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
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